Reduction of Working Hours: Key Implications for the Retail Sector
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Reduction of Working Hours: Key Implications for the Retail Sector

On March 3, 2026, the reduction of working hours in Mexico was published in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF), amending Article 123, Section A, Sections IV and XI of the Mexican Constitution.

Together with the amendments to the Federal Labor Law (Ley Federal del Trabajo, LFT), published on May 1, 2026, this change requires companies to review their operational and staffing models, representing one of the most significant labor law changes for the retail sector in recent years.

The main changes include the following:

  • Article 59 of the LFT: Establishes a maximum ordinary workweek of 40 hours, to be implemented gradually.
  • Article 58 of the LFT: Provides that the distribution of working hours may be agreed upon by the employer and the employee.
  • Articles 66 and 68 of the LFT: Regulate the limits on overtime and the corresponding compensation.
  • Articles 69 and 71 of the LFT: Govern rest days and the Sunday premium.

As of January 1, 2027, companies will be required to implement an electronic working-hours tracking system. Accordingly, they will need biometric time clocks or digital attendance systems capable of maintaining reliable records of clock-in and clock-out times, as well as reports on attendance incidents and overtime hours.

We have identified three key challenges for the retail sector: maintaining store operational coverage, managing increases in labor costs, and properly administering overtime. Companies that proactively adjust their shift schedules, strengthen attendance controls, and improve productivity will be better positioned to comply with the new working-hours requirements.

Preparation should begin with an assessment of each store, job position, shift, and time slot. Companies should then redesign work schedules, update employment contracts, internal work regulations, and policies, and integrate attendance records with their payroll processes.

Early preparation will allow companies to turn this regulatory challenge into an opportunity to improve business productivity and operational efficiency.

 

J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.

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María  José González

María José González

Retail Industry Leader, LATAM

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